Debt Sustainability Challenges in Resource-Rich Developing Countries

The International Monetary Fund and the World Bank are currently undertaking a review of their debt sustainability framework for low-income countries. We at the Natural Resource Governance Institute submitted comments on how the framework could better address the particular debt sustainability challenges faced by resource-rich countries.

Read our comments and a blog putting the challenges in context and explore a map depicting how results of debt sustainability analysis changed over the last 5 years.

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Thank Bryan! I am actually on my way back from work in Mongolia looking at debt sustainability.

Indeed, another case where gov debt piled up on the expectation of mining wealth, but also one where shifting project timelines, opaque borrowing and short-sighted resource backed financing aggravated the situation.

Mongolia is outside of this analysis for being a middle income country, but will be curious to see their new forthcoming DSA. The previous 2015 one suggested that levels of debt and risk of debt distress is high but at least debt is on slow downwards trajectory, while we found this is unlikely without drastic measures.